The Dow Jones Industrial Average was down 1.3%; the S & P500 index also subtracted 1.3%; and the Nasdaq Composite was down 1.4%.
World stock markets plummeted after Moderna’s chief executive, Stéphane Bancel, He also told the Financial Times that the current vaccine regimen may need to be changed.
To these fears was added Regeneron Pharmaceuticals Inc, which indicated that its treatment with antibodies against Covid-19 and other similar drugs they might be less effective against the omicron variant.
US stocks rallied Monday from Friday’s deep sell-off as investors hoped omicron would not trigger a shutdown after hearing guarantees offered by President Joe Biden.
“The old adage that markets hate uncertainty couldn’t be more true and this goes hand in hand with another well-known force, investors’ love of downturns,” said Craig Erlam of OANDA. “Markets will remain very sensitive to indications that vaccines may not protect us this winter as much as we expected.”
On the other hand, the statements of the president of the United States Federal Reserve, Jerome Powell, also had an impact on the market, who said that the word “transitory” is no longer the most accurate term to describe the nature of the high inflation rate in the economy.
“It’s probably a good time to drop that word,” Powell said, in response to a question about the persistent use of the reference to explain how long accelerating inflation is expected to persist, in testimony before the Senate Banking Committee. .
Seven of the top 11 S&P sectors were down, with losses of more than 1% in energy and finance. Banks yielded 1.4%, following the decline in the yield on Treasuries, as demand for security kept debt purchases high.
Travel and leisure stocks were down, with 1.4% declines in the S&P 1500 sub-indices for airlines and hotels, restaurants and leisure.
Source From: Ambito
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